Nike Inc. (NYSE:NKE) stock traded lower Friday after the company reported mixed first-quarter results Thursday and warned about weaker sales ahead.
Several analysts also cut their price forecasts and earnings estimates following the results.
Nike Earnings Snapshot
Nike reported first-quarter revenue of $11.21 billion, missing the $11.33 billion analyst estimate. Adjusted earnings of 48 cents per share beat the 44-cent estimate.
For fiscal 2027, Nike expects revenue to decline by a high-single-digit percentage. The company forecast adjusted earnings of $1.15 to $1.35 per share, below the $1.69 analyst estimate.
The earnings outlook excludes about 15 cents per share in restructuring costs tied to Nike’s PACE program.
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Analysts See More Pressure Ahead
Bank of America Securities analyst Lorraine Hutchinson cited limited visibility into a sales recovery and continued downside risk to Nike’s premium valuation. She cut fiscal 2027 and fiscal 2028 EPS estimates by 21% and 22%, respectively, and lowered the price forecast to $24 from $30.
Guggenheim analyst Simeon Siegel said North America remained a bright spot. The region posted its first improvement in EBIT margin and dollars after an extended period of declines.
However, Siegel viewed the overall report negatively. Another guidance cut raised questions about when Nike’s repeated estimate reductions could stabilize. He lowered the price forecast to $50 from $60.
StoneX analyst Zeyn Burak reiterated a Hold rating. Burak said the quarter had more negatives than positives, while Nike’s reset efforts could weigh on results into fiscal 2028.
He also noted that several competitors continue to post double-digit growth. That backdrop could make it harder for Nike to regain market share even after its business stabilizes.
Stifel analyst Peter McGoldrick said it remains too early to call a bottom. Nike trades at about 28 times earnings based on the midpoint of its fiscal 2027 guidance.
McGoldrick said the PACE cost-savings plan offers some support and expects Nike to expand the program at its November investor day, helping outline a clearer path toward margin improvement.
BTIG analyst Robert Drbul cut fiscal 2027 and fiscal 2028 EPS estimates to $1.35 and $1.65 from $1.65 and $2.25, respectively. He also lowered the price forecast to $50 from $55.
Drbul expects continued pressure from Nike Sportswear, Jordan and Greater China. He also expects conditions in Greater China to worsen from the first quarter.
Needham analyst Tom Nikic cut fiscal 2027 and fiscal 2028 EPS estimates to $1.30 and $1.40 from $1.64 and $1.80, respectively.
Nikic said ongoing challenges in China, Sportswear and Jordan could lead to another earnings decline next year, making it difficult to determine when Nike’s performance may bottom.
Nike Price Action
NKE Price Action: Nike shares were down 5.49% at $33.22 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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